Rakka continues to hide her wings from the others. Reki helps her move Kuu's bed into her room and they talk about the wall around the town. They take the children to buy winter clothes and a human girl tries to touch Rakka's wings. She flees into the Western Woods, led by the crows, who take her to an old well where she learns about her cocoon dream.

The Haibane go into town to buy Bell Nuts, gifts of reconciliation for the Passing of the Year festival. Reki gives one to Hyouko, and he and Midori finally tell Rakka what happened. Rakka learns about the Renmei's sign language, and the Communicator gives her her true name. After the festival, the Haibane of Abandoned Factory send Reki a message.